Citrix 2007 Annual Report Download - page 98

CITRIX SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. ACCRUED EXPENSES
Accrued expenses consist of the following:
December 31,
2007 2006
(In thousands)
Accrued compensation and employee benefits ......................... $ 62,944 $ 47,425
Accrued taxes .................................................. 62,003 44,102
Other ......................................................... 66,436 54,137
$191,383 $145,664
6. EMPLOYEE STOCK-BASED COMPENSATION AND BENEFIT PLANS
Plans
The Company’s stock-based compensation program is a broad based, long-term retention program that is
intended to attract and reward talented employees and align stockholder and employee interests. As of
December 31, 2007, the Company had two stock-based compensation plans under which it was granting stock
options, shares of non-vested stock and non-vested stock units. The Company is currently granting stock-based
awards from its 2005 Equity Incentive Plan (as amended, the “2005 Plan”) and its 2005 Employee Stock
Purchase Plan (the “2005 ESPP”). Upon certain of the Company’s acquisitions, it assumed several plans from the
acquired companies. The Company’s Board of Directors has provided that no new awards will be granted under
the Company’s acquired stock plans or its superseded and expired stock plans (including the Amended and
Restated 1995 Stock Plan, Second Amended and Restated 2000 Director and Officer Stock Option and Incentive
Plan, Second Amended and Restated 1995 Non-Employee Director Stock Option Plan and Third Amended and
Restated 1995 Employee Stock Purchase Plan. Awards previously granted under the Company’s superseded and
expired stock plans that are still outstanding, however, typically expire ten years from the date of grant and will
continue to be subject to all the terms and conditions of such plans, as applicable.
Under the terms of the 2005 Plan, the Company is authorized to grant incentive stock options (“ISOs”),
non-qualified stock options (“NSOs”), non-vested stock, non-vested stock units, stock appreciation rights
(“SARs”), performance units and to make stock-based awards to full and part-time employees of the Company
and its subsidiaries or affiliates, where legally eligible to participate, as well as consultants and non-employee
directors of the Company. Currently, the 2005 Plan provides for the issuance of a maximum of 20,900,000 shares
of common stock of which 5,400,000 was authorized by the Company’s Board of Directors in February 2007 and
its stockholders in October 2007. Under the 2005 Plan, ISOs must be granted at exercise prices no less than fair
market value on the date of grant, except for ISOs granted to employees who own more than 10% of the
Company’s combined voting power, for which the exercise prices must be no less than 110% of the market value
at the date of grant. NSOs and SARs must be granted at no less than market value on the date of grant, or in the
case of SARs in tandem with options, at the exercise price of the related option. Non-vested stock awards may be
granted for such consideration in cash, other property or services, or a combination thereof, as determined by the
Company’s Compensation Committee of its Board of Directors. All stock-based awards are exercisable upon
vesting. The Company’s policy is to recognize compensation cost for awards with only service conditions and a
graded vesting schedule on a straight line basis over the requisite service period for the entire award. As of
December 31, 2007, there were 38,231,365 shares of common stock reserved for issuance pursuant to the
Company’s stock-based compensation plans and the Company had authorization under its 2005 Plan to grant
8,771,717 additional stock-based awards.
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